It is important that you discuss with your advisor all of the fees and charges associated with your financial advisory relationship as well as the value provided for those costs. This is a vital element in a trusted relationship and your advisor should be open to and respectful of this conversation.
We are testing the following cost and results calculations and would appreciate your feedback.
- How much are you paying for your investments?
We’ve partnered with FeeX.com to provide you with an analysis of the fees charged annually in your IRA, 401K, 403b, brokerage and other investment accounts. Learn about how FeeX protects your data.To receive a report on the fees in your accounts you must login into FeeX, set up a user account and password, and then enter information on your investments or accounts. You can either enter your investment holdings one by one or you can enter the login and password on your investment accounts and FeeX will automatically calculate the charges. Once FeeX computes your costs, if you don’t want to continue to track costs at FeeX, a good practice is to change your username and password on your investment accounts.
Take me to FeeX.
Once you’ve added your investment accounts to FeeX, here’s what you will see on FeeX. Click to reveal (and hide) FeeX Screenshots. Once FeeX computes your costs, if you don’t want to continue to track costs at FeeX, a good practice is to change your username and password on your investment accounts.
If you have more than one account, you will find the costs under INSIGHTS.
Click on the “?” under the letter grade. For example:
Write down the percent you are paying in annual fees for ALL accounts. As shown below, the investor is paying 1.12%.
You can also see the percent you are paying for each account:
Complete the next few steps to find out if your fees are low, reasonable, or excessive.
- What services do you receive?
Below are several typical advisory relationships. They outline the services that an advisor might provide. The first two describe comprehensive investment (Scenario A) and financial planning (Scenario B) advice. Scenarios C and D suggest occasional investment or financial planning assistance. Please select the one or two options that best fit your relationship with your advisor.
- What are the costs for the above services?
Does your advisor charge a separate fee for the above services? (Check only one.)
If you pay a percentage of your account, typically this fee would be between .5% and 1.5%. You may instead pay hourly charges or a flat fee. Add up the total dollars paid in a recent year and divide by the value of your account(s). This is the percent paid in addition to the fees in #1 above.
- What are your results?
Add together the percentage from questions 1 and 3 above.
For example: 1.12% (from #1 above) +.9% (from #3 above) =2.02%. This is the rate you pay. Find the scenario or combinations of scenarios that best describes your advisory relationship on the left below. Then look across and find your rate paid in the scale below.
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